Connect with us

Hi, what are you looking for?

News

Oil giant BP reports drop in third-quarter net profit

BP's third quarter performance was hit by lower oil prices and refining margins
BP's third quarter performance was hit by lower oil prices and refining margins - Copyright AFP/File SEBASTIEN BOZON
BP's third quarter performance was hit by lower oil prices and refining margins - Copyright AFP/File SEBASTIEN BOZON

Britain’s BP on Tuesday announced a sharp fall in net profit for the third quarter, with the oil and gas giant hit by weak oil trading and refining margins.

Profit after taxation slumped to $206 million in the three months to September, after a net profit of $4.9 billion in the same period in 2023, BP said in a results statement.

The group earlier this month flagged to markets that its latest earnings would take a sizeable hit after oil prices have fallen on concerns over Chinese demand and the prospect of higher crude production in 2025.

The company’s underlying replacement cost profit excluding exceptional items — a measure of operating earnings — came in at $2.3 billion, down more than $1 billion from a year earlier.

Total revenue dropped around 11 percent to $48.3 billion.

Energy majors are also feeling the impact of declining gas prices, which have fallen heavily since soaring after the invasion of Ukraine by major energy producer Russia in early 2022.

“In oil and gas, we see the potential to grow through the decade with a focus on value over volume,” chief executive Murray Auchincloss said in an earnings statement.

Looking to the fourth quarter, the company said it expects to report lower upstream production, lower volumes and for refining margins to remain low. 

AFP
Written By

With 2,400 staff representing 100 different nationalities, AFP covers the world as a leading global news agency. AFP provides fast, comprehensive and verified coverage of the issues affecting our daily lives.

You may also like:

Business

This cluster MUST be fixed, ASAP. It’s too dangerous to be allowed to continue.

Entertainment

Actresses Nancy McKeon ("The Facts of Life") and Johanna Day portrayed "Pen Pals" in Off-Broadway play.

Business

"Nobody wants to be associated with Musk's behaviour," said German automotive industry expert Ferdinand Dudenhoeffer.

World

Palestinians cross the Netzarim Corridor as they make their way to the north of Gaza - Copyright AFP Eyad BABAAFP team in Gaza City...